The number of local government officials receiving more than £100,000 has increased as households are hit with “inflation-busting” council tax rises, according to analysis by the TaxPayers’ Alliance.
Research by the campaign group found that 3,106 council executives were paid six-figure sums last year, up by 347 on 2022-23.
Of these, 829 employees received at least £150,000, 108 more than the previous year. This is the largest number of people to receive at least that amount since the alliance began collecting council data in 2007.
At least 175 council workers received more than £200,000 in total remuneration, the group added.
The highest-remunerated council boss in the country was Felicity Roe, according to the TPA. Roe, the director of culture, community and business services at Hampshire council, received £651,158, made up of £120,133 in salary, £121,203 in compensation for loss of office and £409,822 in pension payments, the group said.
Advertisement
For context, the prime minister had a salary entitlement of £164,951 last year. Some 188 council employees were said to have had a higher salary than this, and 557 allegedly received total remuneration in excess of that figure.
The total number of well paid employees is expected to be much higher, the alliance claimed, as 59 councils did not provide accounts.
The local authority with the most workers receiving at least £100,000 in total remuneration was Westminster, TPA analysis found, with 60 staff above that amount, ten more than the previous year. However, the council disputes these figures.
The largest bonus given was to the chief executive of Edinburgh International Conference Centre, a subsidiary of Edinburgh council, named only as Marshall Dallas, who received a payment of £72,280.
Contrastingly, two councils, Bolsover and West Oxfordshire, had no employees receiving more than £100,000 in 2022-23.
Advertisement
John O’Connell, chief executive of the TaxPayers’ Alliance, said: “The new financial year has seen council tax soar across the country, and taxpayers will notice that top brass pay has simultaneously surged.
“Local authorities provide crucial services and residents will want to make sure they are getting bang for their buck with their ever-increasing bills.
“Residents can use these figures to ask whether precious funds are really going towards frontline services, or whether town hall bosses can get better value for money.”
A spokeswoman for the Local Government Association, the national representative body for councils, said: “Councils are large, complex organisations with sizeable budgets.
“It is important that the right people with the right skills and experience are retained to deliver this important work. Senior pay is always decided by democratically elected councillors in an open and transparent way.”
Advertisement
In 2023, Nottingham, Birmingham, and Woking councils all faced bankruptcy. Croydon, for the third time, and Thurrock went bankrupt in 2022. Half of councils are warning of effective bankruptcy within five years without reform.
Although councils cannot technically go bankrupt, they can issue a section 114 notice saying that they are unable to commit themselves to any new spending and must come back with a new budget within 21 days that falls in their spending envelope. This often has a negative impact on residents, including severe cuts to frontline services.
Cammy Day, leader of Edinburgh city council, said: “These pay awards are a matter for EICC’s board. However, I do not agree with bonuses like this in arms’ length companies. As a council we have publicly discussed and strongly urge restraint amongst these companies with regard to bonuses. I have stressed this to the board.”
Westminster city council said: “The council has unique responsibility for managing the heart of our capital city and Westminster recruits the best talent to run a complex organisation. Our services range from maintaining the busiest network of streets in the country and the multi-billion economy of the West End to supporting around a quarter of a million residents, including the most vulnerable in society. The salaries we pay reflect the skills needed to lead the authority.”
Hampshire county council said: “Employing approximately 10,000 people directly and many more indirectly, Hampshire county council is one of the largest public sector organisations in the country, serving 1.4 million residents, spending over £2 billion per year on the delivery of a wide range of complex and essential public services. County council rates of pay are competitive in order to recruit, retain and motivate the best people, and to deliver value for money for the taxpayer.”
Advertisement
Hampshire added that some of its most senior officers were also responsible for some services to other public sector organisations. The council also pointed out that the contribution to Roe’s pension was dictated by the circumstances of her redundancy and had not been paid to her directly.
